Washington passed a bill amending language related to the foreclosure prevention fee requirement under the Mortgage Broker Practices Act and Consumer Loan Act. A foreclosure prevention fee of $80 must be charged to the borrower at the time of closing for each residential mortgage loan originated by a mortgage lender or broker. The foreclosure prevention fee must then be paid into the foreclosure fairness account created in the custody of the state treasurer. The foreclosure prevention fee may be financed in the loan and paid from the loan proceeds or from any borrower cash contribution at the time of closing. Note that, the required foreclosure prevention fee does not need to be assessed for a reverse mortgage loan. Under this bill, the language “or from any borrower cash contribution” was removed.
The bill becomes effective June 10, 2026.
Click to view the Washington Senate Bill 5938: https://www.tenaco.com/wp-content/uploads/2026/03/WA-SB-5938-03-25-26.pdf
